- Total take-up of offices (over 1,000 sq ft) in Q4 2017 was 315,080sq ft, a 5% increase on the 5 year average of 299,766sq ft.
- The out of town market has performed particularly well, exceeding take-up levels seen for the same period last year.
Not only were the deals at One Cathedral Square the largest transactions this quarter, they also broke record rents for the second time this year. The deal to the University of Bristol was agreed at £31.00psf and the letting of the upper floors to Dyson took grade A rents to a new high of £32.50psf.
Aurora, the city’s only speculative development, achieved another pre-let of 26,985sq ft of fifth and sixth floor space to Simmons and Simmons. Details of this transaction are confidential but they are believed not to have furthered prime Grade A rent levels.
There were a total of 32 deals done in the city centre this quarter, which gives a total of 104 city centre deals for 2017.
The average deal size was 5,904sq ft which is slightly above the 10 year average. Of the 104 deals done, 20 of these were for grade A space, which had an average deal size of 11,866sq ft.
The out of town market exceeded expectation for a second quarter with a take-up of 142,063sq ft, a 28% rise on the same period last year and a 45% increase on the 5 year average.
However unlike Q3, which saw several larger deals, this quarter has been boosted by the pre-let by LSH of 85,790sq ft of new building office space at 100 Bristol Business Park to Babcock. This is the largest out of town deal since 2007, when LSH acted on behalf of Atkins to acquire 100,000sq ft of pre-let space at The Hub, 500 Aztec West.